A witness to the accident, Tom Murphy, said, "It just seems like the most ridiculous thing to pull off."

Officials said in a statement to ABC News that Biddle is considered a "wanted person," and they "believe that Mr. Biddle 'staged an incident,' to avoid prosecution."

ABC News' legal expert Dan Abrams said, "It's not illegal to fake your death. The problem is once you do it, you almost inevitably end up committing other crimes by not showing up for court, not paying your taxes, fraud, etc."

According to prosecutors, Biddle and his business and racing partner, Tracy Blumenstein, have been indicted on multiple counts of theft by deception and fraud.

"When someone is facing criminal charges and he disappears, the authorities are going to be suspicious," Abrams said.

Court documents obtained by ABC News allege Biddle accepted a $20,000 down payment for a boat that he never supplied to the customer.

Neither Blumenstein nor Biddle's attorneys would comment on the investigations.